Bank of America 2007BASics/IndustrialsConference

James S. SawyerExecutive Vice President and CFO

May 9, 2007

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 2

Forward Looking StatementForward Looking StatementThis document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of tax, environmental, home healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of litigation and regulatory agency actions; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause actual future results or circumstances to differ materially from the projections or estimates contained in the forward-looking statements. The company assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A (Risk Factors) in the company’s latest Annual Report on Form 10-K filed with the SEC which should be reviewed carefully. Please consider the company’s forward-looking statements in light of those risks.

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 3

Why Praxair?Why Praxair?

2001-2006 CAGR

Sales +10%

Operating Profit +15%

Net Income +20%

Return on Capital 15%

Secular Growth Drivers

Energy EnvironmentEmerging economies

Superior ExecutionCapital disciplineFocused growth programsSix Sigma productivityHands on leadership

Unique Business ModelDedicated supply systemsLong term contractsHistorically recession resistant

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 4

Natural Gas Well FracturingNatural Gas Well Fracturing

Low permeability wells – Tight sands– Coal bed methane– Gas shale

NG above $4/MMBtu

Praxair best positioned– Location– Expertise and capability– Relationships– Supply contracts

CO2 frac job at a well in Colorado

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 5

N2 or CO2 injection in large quantities at high pressure

Tertiary recovery can enable incremental production of 10-30%

Oil prices above $35 support EOR

430 billion barrels of technically recoverable US oil reserves*

Praxair - 19 EOR projects

DriveWaterDriveWater WaterWater

OilBankOil

BankMiscible

ZoneMiscible

ZoneAdditional

OilRecovery

AdditionalOil

Recovery

CO2

N2 or

CO2

N2 orCO2

N2 or

Enhanced Oil Recovery (EOR)Enhanced Oil Recovery (EOR)

* DOE estimate

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 6

Enhanced Oil Recovery (EOR)Enhanced Oil Recovery (EOR)PEMEX Samaria Project

6,500 TPD N2 plant

Natural gas driven−Gas turbine - air compressor−Steam turbine - N2 compressor

Second largest N2 plant in the world for EOR

Pemex est. additional oil & gas recovery through 2018

−470 million barrels of light crude−540 billion cf natural gas

Start- up Q2 2007

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 7

Enclaves deliver superior growth at higher returnsEnclaves deliver superior growth at higher returns

Refining industry hydrogen needs to double in next 5 years

Heavy/high sulfur crude– Oil sands– Mayan– Venezuelan

Pipeline enclave supply systems – lower cost and increased reliability

Peak shaving hydrogen storage cavern on-stream in 2007

Hydrogen Pipeline EnclavesHydrogen Pipeline Enclaves

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 8

Canadian Oil Sands / Gasification

PipelineSystem

175 B barrels of proven reserves

Current production of 1.1 MM bpd expected to triple by 2015

Over 2.0 B SCFD of additional H2 for upgrading bitumen

Large 02 requirements for proposed gasification projects

Economically competitive at $45/bbl oil

Praxair well positioned for future H2, O2 and N2 opportunitiesPraxair well positioned for future H2, O2 and N2 opportunities

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 9

Oxygen Supply for Energy ProjectsOxygen Supply for Energy ProjectsNow

3-5 years

Coal gasification in China− Power− Chemical Feedstock – 3000 TPD 02 plant for SOPO

Oxy-coal combustion− Power, retrofits possible

Refining pet-coke gasification− Low-value fuel source− Poly-generation – hydrogen, power

Integrated Gasification Combined Cycle (IGCC)− CO2 capture-ready power production

Massive Projects

Power Production O2 RequirementOxy-Coal (600MW) 10,000 - 12,000 TPDIGCC (600MW) 5,000 – 6,000 TPD

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 10

CO2 capture,separation and

compression CO2transport

CO2sequestration

SMR, IGCC or PC power plant

EOR

Oxy-coal combustion technology

Global leader in CO2– 90 plants worldwide

CO2 capture technologies– Separation, purification

Enhanced Oil Recovery– Gulf Coast Carbon Center

4 DOE regional partnerships

Praxair Seeper TraceTM

– CO2 monitoring/detection services

Praxair Strengths

Praxair is uniquely positioned to provide enabling technologies

CO2 Capture and SequestrationCO2 Capture and Sequestration

CO2injection

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 11

Emerging EconomiesEmerging Economies

Mexico Brazil China India

Population 100MM 180MM 1.3B 1.1B

Industrial Production Growth 5.2% 3.2% 16.3% 9.4%

Per Capita Gas Consumption 20% 15% 2% 1%

Praxair Leading Position

% of United States

Well positioned to capture emerging world growthWell positioned to capture emerging world growth

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 12

Growing in ChinaGrowing in China

100

Leading position in China– 11 JV’s and 13 subsidiaries

Shanghai

NanjingNanjing

GuangzhouGuangzhou

Shanghai Chemical Park (BP, BASF, Bayer)

Daya Bay (Shell/CSPC)

BeijingBeijingTianjin

Petrochemical parks – Shanghai, Caojing– Daya Bay, Nanhai

Nanhai

Samsung

Electronics – Beijing– Shanghai– Taiwan

SMIC(Semiconductor)

QingdaoQingdao

CO2 Plant Other

Bao Steel JVMetals

– Shanghai– Guangzhou

Gasification – Shanghai region

Gasification

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 13

Expanding Presence in IndiaExpanding Presence in India$350 MM industrial gas market* growing at 20% annually

Domestic demand driving opportunities

Praxair #1 position

Winning projects at good returns

– 9 plants operating– 4 project start-ups in 2007-2008

Praxair global engineering center

Praxair

BOC

Other

Air ProductsJV

* Non-captive supply – PX estimated market shares

Unique situation – few global playersUnique situation – few global players

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 14

Opportunities in IndiaOpportunities in India

Steel Petrochem Manufacturing Pharma

MM TPY

2005 2010

Units MM

1 33

6

11

2005 2010

Rapid infrastructure developmentRapid infrastructure development

Shortage of textiles & plasticsNew naphtha crackers

FermentationReactor cooling

Strong domestic demandSmall car & components hub

2whCars

3535

6060

2005 2010

MM TPY

99

2525

2005 2010

Sales $ B

2

8

ConstructionAutoMet fab

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 15

ASUCO2 PlantsPackagedPraxair operates most efficient

production/distribution network

Export manufacturing economy, strong domestic demand growth

Energy markets−Enhanced Oil Recovery – PEMEX−Oil well services

Acquisition of Linde Mexico− $75MM sales−Significant revenue and cost

synergies

Praxair Mexico – Strong Growth ProfilePraxair Mexico – Strong Growth Profile

LiquidProductSupply

PumpingServices

Sales of $500 MM growing 15% per year

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 16

Leading position

Recent wins - steel– Gerdau, Arcelor, Thyssen

Recent wins – paper/chem/metals– Suzano, Botnia

On-site business

Energy MarketsConversions from alternative fuels

– Market growing 10-12%

JV with Petrobras for LNG distribution

– Areas not served by pipeline– First LNG plant for Brazil and

Praxair

Sales of $1.3 billion growing double digits

South America Growth PlatformsSouth America Growth Platforms

Brazil Steel Production$12.8 B Investment

(2004 – 2010)

Brazil PetroChem. Industry$14.1 B Investment

(2006 – 2011)

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 17

Strong Cash Flow GenerationCash Flow 2000-2006 ($MM)

$400

$1,800

2000 2002 2004 2006

2006 $MM %SalesOperatingCash Flow $1,752 20%

CapitalReinvestment

$1,100 13%

Stock Dividendsand Purchases (net)

$543 7%

Operating Cash Flow CAPEXFree Cash Flow(1)

(2)

1) Non-GAAP measure. Free cash flow equals operating cash flow minus capital expenditures.2) Excludes Leased Asset Purchase in 2003

Return on capital of 15% after tax generates cash flowfor growth and shareholder return

Return on capital of 15% after tax generates cash flowfor growth and shareholder return

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 18

Capital Investment Priorities

Capital Investment $$

Project IRR Minimum Hurdle Rate

Bolt-on projectsin core geographies

Stand-aloneproject

Foregoneprojects

Cost of Capital

Shareholder value creation is generated by the spread between IRR and the cost of capital

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 19

Competitive Advantage - Execution

Cost and Schedule Predictability* Quintiles

Independent Research Study IPA - 2005

Top 20%1st

2nd Chem D Chem F

2006 project cost performance

<3% vs budgetCos

t

3rd Chem E Chem H

4th Chem AChem G

Chem C Chem B5th

1st3rd5th 4th 2ndQuintiles

Schedule* Chemical Industry

Superior execution ensures expected returns

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 20

What We Are NOT DoingWhat We Are NOT Doing

Chasing growth with lower project returns

Approaching plant sales as a business

Adding speculative liquid capacity

Losing cost discipline

Relying on cycles for growth

Carefully managing our business to maximize shareholder valueCarefully managing our business to maximize shareholder value

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 21

OrganicSales

AnnualGrowth

8 - 12%

Operating Profit

EPS

10 - 14%

12 - 16%

2005-20100.0%

Sales Growth %

5.0%

Energy

EmergingEconomies

ApplicationsTechnology

Base Business

10.0%

Global Praxair Forecast through 2010Global Praxair Forecast through 2010

We are committed to bringing growth to the bottom line!

Bank of America 2007 BASics/Industrials Conference – NYC – 5-9-2007 Page 22

Principles of SustainabilityPrinciples of Sustainability

Governance and IntegrityFoster a culture of integrity and accountability throughout the company through rigorous compliance with all laws, and by establishing and following effective corporate governance practices.

Customer CommitmentContinuously develop new products and applications that help our customers improve their productivity, energy efficiency and environmental performance. Provide the highest levels of service, reliability and quality to our customers.

Environmental ResponsibilityContinue to improve the efficiency of energy consumption. Reduce the intensity1 of air emissions, including greenhouse gases.

Employee Safety and DevelopmentMaintain a safe work environment with a goal of zero accidents. Provide training and career opportunities that allow employees to develop to their fullest potential. Increase the diversity of our workforce so that it is more representative of the communities in which we operate.

Community SupportHelp to improve the welfare and future of the communities in which we operate by sharing our knowledge, expertise and resources related to environmental protection, and community health, safety and security.

Financial PerformanceContinuously improve our financial performance and provide attractive returns to our shareholders. Generate operating cash flow to reinvest in business growth and pay dividends.

1Intensity is per-unit-of-production measure

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